Last checked at 14 May 2021 07:00
14th May 2021
Helios Underwriting plc
('Helios' or 'the Company')
Quarterly Syndicate Mid-point Forecasts
Helios, the unique investment vehicle which acquires and consolidates private underwriting capacity at Lloyd's, announces the current mid-point forecasts in respect of its portfolio of syndicate capacity for the 2019 and 2020 years of account based on 1st quarter 2021 estimates.
Nigel Hanbury, Chief Executive, commented:
"As the only listed consolidator of private capital at Lloyd's, Helios has built a diversified and unique portfolio of insurance risk with top performing syndicates. We provide sustainable returns for shareholders through exposure to targeted acquisitions of the capacity of these high quality syndicates, and our strategy is bringing results, with returns on average 4.7% better than the Lloyd's market itself over recent years, having outperformed the Lloyd's market every year since 2013 without exception.
"Following our recent successful fundraising, we are pursuing opportunities to further build our core portfolio of capacity, to increase the capacity retained by Helios and continue to achieve outperformance against the Lloyd's market as whole.
"We look forward to creating further shareholder value."
| Year of Account | ||
| 2019 | 2020 | 2021 |
| £m | £m | £m |
Capacity - Position as at 12th May 2021 |
|
|
|
Retained | 31.3 | 30.8 | 58.6 |
Reinsured | 39.0 | 49.1 | 51.6 |
| 70.3 | 80.0 | 110.3 |
|
|
|
|
Mid-point forecast at 31st December 2020 | -2.15% | N/A |
|
Current mid-point forecast | -1.59% | 0.60% |
|
|
|
|
|
Lloyd's Market Average | -4.80% | 0.35% |
|
Helios outperformance | 3.21% | 0.25% |
|
Commentary
The 2019 result showed a good improvement over the midpoint forecasts as at 31st December 2020, reflecting the maturing of the year of account and the greater clarity over the reserves required for Covid-19 losses. The breakeven position for the 2020 year of account at this stage reflects the high incidence of natural catastrophes in 2020.
The outperformance of 3.21% of the portfolio against the average for the Lloyd's market for 2019 continues the trend of outperformance achieved over the last 6 years which averages over 4.7% during the period.
Notes
1) The table above shows the capacity as at 12th May 2021 splitting the capacity retained by Helios and the capacity that is ceded to quota share reinsurers.
2) The mid-point forecasts for 2019 and 2020 years of account as of 1st quarter 2021 have been aggregated at syndicate level from estimates supplied by Managing Agents.
3) The impact on Helios will be as follows:
a. The change in the mid-point estimates on the retained capacity over the year will be recognised in the Helios income statement in the year to 31st December 2021.
b. The overall change in the result will be recognised by Helios in cash at the close of the year of account.
For further information, please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive +44 (0)7787 530 404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer +44 (0)7754 965 917
Shore Capital
Robert Finlay +44 (0)20 7601 6100
David Coaten
Willis Re Securities (Financial Adviser)
Alastair Rodger +44 (0)20 3124 6033
Quentin Perrot +44 (0)20 3124 6499
Buchanan
Helen Tarbet / Henry Wilson / George Beale +44 (0)7872 604 453
+44 (0)20 7466 5111
About Helios
Helios provides a limited liability direct investment into the Lloyd's insurance market and is quoted on the London Stock Exchange's AIM market (ticker: HUW). Helios trades within the Lloyd's insurance market writing approximately £110m of capacity for the 2021 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.